The Empirical Study On Seasoned Equity Offerings And Corporate Long-run Performance In Chinese Listed Companies

The relationship between Seasoned equity offerings and corporate long-run performance has been the subject of intense research in corporate finance. This dissertation investigates the accounting performance and Tobin's Q around the time of Seasoned equity offerings, which are successfully implemented rights offering and issue new shares in A stock market during 2001-2006 in China, according to five hypotheses, and then discusses the relationship between SEO and corporate long-term performance of listed companies with regression model. Results shows:1. The overall corporate long-run performance of listed companies shows a downward trend after SEO.2. Behavior of earnings management exists in SEO which is negative related to the corporate long-run performance. There is more earnings management behavior in issue new shares companies than rights offering companies, which confirms Chinese listed companies prefer issuing new shares.3. The offering ratio of large shareholders is significant positive related to the accounting performance, while it is negative related to Tobin's Q, but not significantly.4. The times of SEO (Mixed samples) are significant positive related to the accounting performance, while negative related to Tobin's Q, also not significantly.5. The ratio of assets and liabilities before SEO is significant positive related to Tobin's Q. Our findings complies that only the appropriate ratio of asset-liability can enhance the corporate performance.6. The reform of non tradable shares (NTS) is significant positive related to both accounting performance and Tobin's Q. but the NTS couldn't change the downward trend of corporate long-run performance after SEO.Based on the above empirical study, this dissertation finally presents the corresponding innovative policies to standardizing the behavior of SEO, Optimizing the resources allocation and improving the long-run corporate performance.